Ocado shares fall 7% after reporting profits will be hit

Ocado says its headline profits will take a hit this year and that it needs to raise capital to transform itself from an online grocer into a technology provider building robot-operated warehouses for other retailers. Ocado shares roared higher last month after it signed partnerships with Groupe Casino of France and Canada's Sobeys to build robot-operated warehouses. To fund further deals of this nature, the retailer said it will place 5 per cent of its shares with investors for its expansion, which analysts at Bernstein said would raise about £155m. Mr Steiner forecast that Ocado would sign "Multiple" new technology deals with international retailers. For the year to December 2017, Ocado missed analysts' forecasts for its preferred profit measure of earnings before interest, tax, depreciation and amortisation, making £84.3m against City estimates of £90.3m. On a statutory accounting basis, Ocado made a loss of £0.5m for 2017, which compared with a profit of £12m last year. "We must do everything faster," such as hiring new software engineers, he added, "To be able to say yes to more Ocado Solutions partners."